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Albertsons Companies
(NYSE:ACI)
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Rating:54Neutral
Price Target:
$13.50
▲(8.87% Upside)
Action:Reiterated
Date:10/16/26
The score is held down primarily by weakening profitability and very high leverage, which increase sensitivity to ongoing operating pressure. Support comes from improving operating/free cash flow and a constructive, cost-reduction-focused turnaround plan, while technicals are improving short-term but remain mixed longer-term. Valuation is tempered by the negative P/E, partially offset by a relatively high dividend yield.
Positive Factors
Digital and loyalty engagement
Growing e-commerce adoption and strong loyalty engagement deepen customer relationships and can raise shopping frequency and basket size. These capabilities give Albertsons a durable omnichannel platform, while personalized offers and digital data can support better retention, pricing, and merchandising decisions.
Negative Factors
Very high leverage
Very high leverage reduces Albertsons' ability to absorb prolonged operating weakness or invest aggressively without increasing financial strain. It also makes interest costs and refinancing conditions more important, while modest equity relative to assets leaves less protection if margins or cash generation deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital and loyalty engagement
Growing e-commerce adoption and strong loyalty engagement deepen customer relationships and can raise shopping frequency and basket size. These capabilities give Albertsons a durable omnichannel platform, while personalized offers and digital data can support better retention, pricing, and merchandising decisions.
Read all positive factors
Albertsons Companies (ACI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.57B
Dividend Yield4.73%
Average Volume (3M)8.79M
Price to Earnings (P/E)―
Beta (1Y)-0.10
Revenue Growth2.26%
EPS Growth-106.73%
CountryUS
Employees275,000
SectorConsumer Defensive
Sector Strength42
IndustryGrocery Stores
Share Statistics
EPS (TTM)-0.03
Shares Outstanding470,482,420
10 Day Avg. Volume10,317,826
30 Day Avg. Volume8,790,729
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)5.31
Price to Sales (P/S)0.12
P/FCF Ratio18.51
Enterprise Value/Market Cap3.28
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit0.96
Enterprise Value/Ebitda6.85
Forecast
1Y Price Target
$12.58Price Target Upside1.48% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)1.76
Revenue Forecast (FY)$81.92B
Albertsons Companies Business Overview & Revenue Model
Company Description
Albertsons Companies, Inc., through its subsidiaries, operates in the food and drug retail industry in the United States. The company’s food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharm...
How the Company Makes Money
Albertsons primarily makes money by selling groceries and other consumer goods directly to customers through its network of retail stores and digital channels. Its core revenue stream is product sales across key categories such as fresh foods (e.g...
Albertsons Companies Earnings Call Summary
Earnings Call Date:Oct 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 12, 2027
Earnings Call Sentiment Neutral
The call presented a mixed but change-oriented outlook. Albertsons retains strong assets, cash generation, digital and pharmacy capabilities, and several active growth and productivity initiatives. However, current operating performance remains weak, with negative identical sales, pressured traffic and units, margin and expense-rate deterioration, customer economic pressure, an unsatisfactory price position, and no updated financial outlook. Management characterized the company as fully engaged in a turnaround and committed to accelerating cost reduction, execution improvements, and customer value initiatives.Positive Updates
Expanded Cost Savings Program
The cost savings program was increased from $1.5 billion to $2 billion over the next three years, and management said there was more room to run the program at a faster pace.
Negative Updates
Negative Identical Sales and Modest Reported Earnings
Second-quarter identical sales declined 0.8%. Adjusted EBITDA was $784 million and adjusted EPS was $0.36 per diluted share.
Read all updates
Q2-2026 Updates
Positive
Negative
Expanded Cost Savings Program
The cost savings program was increased from $1.5 billion to $2 billion over the next three years, and management said there was more room to run the program at a faster pace.
Read all positive updates
Company Guidance
Albertsons said it is not providing an incremental update to its financial outlook because the comprehensive review may change the pace and mix of investments, cost reductions and related timing, and portfolio actions; management said nothing has fundamentally changed from the exit rate in the second quarter and it is continuing to see the same general performance from the core business. The cost savings program was increased from 1.5 billion to $2 billion over the next three years, with “more room to run there and at a faster pace,” while management expects aggressive SG&A action in the next 12 to 18 months. By the fourth quarter earnings call, the company plans to provide a refreshed customer strategy, a significantly expanded productivity and cost reduction program, portfolio optimization actions, an updated capital allocation framework, clear metrics and KPIs, and a fully vetted financial outlook; it also plans an investor day in spring 2027. Management said 2026 capital projects already underway are good ROI projects and would not “fundamentally” be a reset in the back half, while it will remain opportunistic with the $1.7 billion remaining on its share repurchase authorization.Albertsons Companies Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
28
Negative
Cash Flow
60
Neutral
| Breakdown | TTM | Feb 2026 | Feb 2025 | Feb 2024 | Feb 2023 | Feb 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.21B | 83.17B | 80.39B | 79.24B | 77.65B | 71.89B |
| Gross Profit | 22.46B | 22.61B | 22.26B | 22.05B | 21.76B | 20.72B |
| EBITDA | 3.14B | 3.41B | 4.09B | 4.53B | 4.80B | 4.89B |
| Net Income | -51.30M | 217.40M | 958.60M | 1.30B | 1.51B | 1.62B |
Balance Sheet | ||||||
| Total Assets | 27.22B | 26.77B | 29.31B | 28.79B | 28.75B | 30.77B |
| Cash, Cash Equivalents and Short-Term Investments | 282.00M | 198.60M | 339.20M | 212.00M | 477.20M | 2.97B |
| Total Debt | 15.92B | 15.30B | 14.18B | 14.24B | 15.01B | 15.30B |
| Total Liabilities | 25.79B | 24.93B | 25.92B | 26.05B | 27.14B | 27.75B |
| Stockholders Equity | 1.43B | 1.84B | 3.39B | 2.75B | 1.61B | 3.02B |
Cash Flow | ||||||
| Free Cash Flow | 811.90M | 527.30M | 749.40M | 628.20M | 700.00M | 1.91B |
| Operating Cash Flow | 2.60B | 2.37B | 2.68B | 2.66B | 2.85B | 3.51B |
| Investing Cash Flow | -1.70B | -1.68B | -1.89B | -1.75B | -1.98B | -1.54B |
| Financing Cash Flow | -892.30M | -782.20M | -684.10M | -1.18B | -3.37B | -789.50M |
Albertsons Companies Technical Analysis
Positive
12.40
Price Trends
12.21
Positive
12.81
Positive
14.63
Negative
Market Momentum
0.43
Negative
75.51
Negative
83.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Positive. The current price of 12.4 is above the 20-day moving average (MA) of 12.35, above the 50-day MA of 12.21, and below the 200-day MA of 14.63, indicating a neutral trend. The MACD of 0.43 indicates Negative momentum. The RSI at 75.51 is Negative, neither overbought nor oversold. The STOCH value of 83.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ACI.
Albertsons Companies Risk Analysis
Albertsons Companies disclosed 34 risk factors in its most recent earnings report. Albertsons Companies reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Albertsons Companies Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $6.18B | 12.60 | 34.84% | ― | 7.20% | 7.23% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.63B | 15.72 | 6.30% | 0.75% | 1.02% | 84.32% | |
61 Neutral | $1.95B | 20.10 | 7.15% | 1.72% | 4.50% | -3.08% | |
54 Neutral | $39.43B | 36.09 | 17.17% | 2.16% | 1.58% | -53.21% | |
54 Neutral | $6.57B | -465.33 | -2.78% | 4.73% | 2.26% | -106.73% | |
53 Neutral | $1.32B | -3.44 | -40.07% | ― | 5.12% | -4889.01% |
* Consumer Defensive Sector Average
ACI
Albertsons Companies
13.96
-3.97
-22.15%
IMKTA
Ingles Markets
87.88
16.60
23.28%
KR
Kroger Company
66.77
0.25
0.37%
WMK
Weis Markets
78.98
14.36
22.22%
SFM
Sprouts Farmers
66.26
-40.54
-37.96%
GO
Grocery Outlet Holding
13.30
-1.05
-7.32%
Albertsons Companies Corporate Events
Business Operations and StrategyExecutive/Board Changes
Albertsons Companies Adds Harmit Singh to Expanded Board
Positive
Oct 15, 2026
On October 15, 2026, Albertsons Companies expanded its board from 14 to 15 members and appointed Harmit Singh, currently Executive Vice President and Chief Financial and Growth Officer at Levi Strauss Co., as a director for a term running to the ...
Business Operations and StrategyExecutive/Board Changes
Albertsons Expands Board, Names Interim Chief Financial Officer
Positive
Sep 30, 2026
On September 30, 2026, Albertsons Companies’ board announced the appointment of retail veterans William P. Boltz, Chris Drumgoole and Meg Ham as independent directors, effective October 14, 2026, expanding the board from 11 to 14 members. Th...
Business Operations and StrategyExecutive/Board Changes
Albertsons Names Meg Whitman Executive Chair to Drive Strategy
Positive
Sep 9, 2026
On September 8–9, 2026, Albertsons Companies appointed Meg Whitman to its Board of Directors and to the newly created role of Executive Chair, expanding the board from 10 to 11 members and naming former Chair Kim Fennebresque as Lead Indepen...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Albertsons Shareholders Approve Governance Changes at Annual Meeting
Positive
Aug 11, 2026
At the August 6, 2026 annual meeting of stockholders, Albertsons Companies’ investors elected all nominated directors to serve until the 2027 meeting and ratified Deloitte Touche LLP as the independent auditor for the fiscal year ending Feb...
Business Operations and StrategyExecutive/Board Changes
Albertsons Announces Planned Retirement of President and CFO
Neutral
Jul 23, 2026
On July 23, 2026, Albertsons Companies announced that President and Chief Financial Officer Sharon McCollam plans to retire later in 2026, marking a significant leadership transition at the U.S. food and drug retailer. McCollam, who joined Alberts...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.